Category: Business

RIYADH, New data from the Joint Organisations Data Initiative (JODI), a Riyadh-based international collaboration to improve the availability and reliability of data on petroleum and natural gas, shows that global oil demand surpassed pre-pandemic levels in March, while production of crude oil was stuck at 97 percent of the level before the onset of COVID-19.

The JODI oil and gas databases were updated on Monday with more than 50 countries reporting data for the latest month of March 2022. The March data submissions account for 70 percent of global oil demand and 55 percent of global crude production.

According to the newly released data, oil demand in March was at 101 percent of 2019 levels, while crude production was only at 97 percent. Demand exceeded 2019 levels despite sharp declines in China.

Compared to 2019, crude production is materially lower now in Nigeria, US, Angola, Iraq, and the UK. Demand for gasoline, diesel, and LPG exceeded pre-COVID levels in March, but jet fuel demand was 25 percent lower than 2019 levels. Product inventories in March fell by 32.4 mb (slightly more than the seasonal average) and are now 99.8 mb below the 5-year average.

Crude inventories in March increased by 12.7 mb (slightly less than the seasonal average) and are now 284 mb below the 5-year average.

JODI gas data shows March demand was at 94 percent of year-ago levels and below the 5-year average, while production was at 97 percent of 2021 levels and above the 5-year average. Gas inventories declined by 8.4 bcm (less than the seasonal average) and are now 20.7 bcm below the 5-year average.

Source: Emirates News Agency

ABU DHABI, Under the rule of late His Highness Sheikh Zayed bin Sultan Al Nahyan, the UAE has buttressed up its position and proactive role on the regional and international scene, forging robust relations with the outer world on the basis of mutual respect and unwavering commitment to resolving global disputes through diplomacy.

The prudent leadership of the late Sheikh Khalifa contributed to advancing the stature of the UAE as a regional cornerstone for achieving security and stability and promoting peaceful coexistence.

The late president had his thoughtful vision for the Arab Gulf as a strategic region whose security and stability are fundamental to the security and stability of the world.

Under his leadership, UAE continued its significant role in deepening ties of cooperation between GCC states and their peoples, and effectively contributed to the sustainable development drives adopted by the region.

In so doing, the late Sheikh Khalifa was keen on following in the footsteps of the UAE Founding Fathers, consolidating bridges of cooperation with all Arab nations across all fronts.

During the past years, in which many Arab countries faced major challenges, the UAE contributed to maintaining Arab security, providing all possible means of support for defending Arab causes.

During the global health crisis, triggered by the COVID-19 pandemic, the UAE has been unswervingly standing by Arab nations in addressing the repercussions through the dispatch of medical supplies, food and other humanitarian aid and services.

Under late Sheikh Khalifa, the UAE forged strategic partnerships with emerging economic powers like China, India and South Korea, while continuing to powerhouses led by the United States and Russia. It also continued to strengthen cooperation relations with the European Union members, notably France, Britain, Germany and other influential international powers.

Thanks to his wise policy, the UAE has maintained constructive diplomatic relations with about 200 countries around the world, with the Emirates now hosting around 110 foreign embassies and 75 consulates on its soil. Today, the UAE passport ranked on the list of the world’s top 20 most powerful passports in the first quarter of 2022. The UAE passport ranked 15 this year and 16th in 2021 with a visa-free/visa-on-arrival score of 173. In 2020, the UAE passport was ranked 18th. UAE passport holders can now enter 175 destinations around the world visa-free.

Thanks to his leadership, the UAE established partnership ties with various international organisations and institutions, and played a prominent role in enabling these entities to carry out their responsibilities, foremost of which is maintaining international security and stability, promoting the language of tolerance and dialogue among peoples, and strengthening response to emergency humanitarian situations.

Recently, the UAE won for the second time in its history a non-permanent seat in the UN Security Council for the period 2022-2023. In addition, UAE won membership on the UN Human Rights Council for the 2022-2024 term during elections that took place among members of the United Nations General Assembly, continuing its efforts to promote and protect human rights on national, regional, and international levels The United Arab Emirates has cooperation agreements with more than 28 international organisations of the United Nations, which carry out about 80 advisory and technical missions on the Emirati soil .

At the humanitarian level, UAE under late Sheikh Khalifa forged ahead with providing foreign aid to various countries around the world with the aim of reducing poverty and helping countries and societies in need, as well as promoting peace, prosperity and stability, and stimulating economic growth in developing countries. Since establishment until mid-2021, the UAE provided more than AED320 billion in in foreign aid to about 155 countries across the globe.

Source: Emirates News Agency

SHARJAH, Air Arabia (PJSC), the Middle East and North Africa’s (MENA) first and largest low-cost carrier operator, today reported a strong profit in first quarter of 2022, as recovery in demand for air travel continued.

The profit, valued at AED 291 million, is an increase of 756 percent compared to AED 34 million registered in Q1 2021. In the same period, the airline posted a turnover of AED 1.12 billion, a 97 percent increase in turnover compared to the first quarter of last year.

The financial and operational results achieved in the first quarter were backed by the continuous recovery in demand for air travel. More than 2.4 million passengers flew with Air Arabia between January and March, 2022, across the carrier’s five hubs, marking an 86 percent increase compared to a total of 1.3 million passengers carried in the first quarter of last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2022, stood at an impressive 79 percent, up four percent compared to the same period last year.

Commenting on the results, Sheikh Abdullah bin Mohammad Al Thani, Chairman of Air Arabia, said, “The strong performance we witnessed last year continued in the first quarter of 2022 and was supported by higher customer demand for Air Arabia’s value driven product, as well as rigid cost control measures that the airline took since the start of the pandemic”.

“We have continued with our network expansion strategy in the first quarter of this year by adding new routes and new frequencies across all operating hubs as well as continuing with preparations for the launch of our new ventures in Armenia and Pakistan,” he added, noting that Air Arabia added four new routes from its operating hubs in the UAE, Morocco, and Egypt the first three months of 2022 and fully resumed its city check-in across the UAE. Air Arabia Group also unveiled the brand identity of its latest two ventures ‘Fly Arna’ and ‘Fly Jinnah’ in Armenia and Pakistan respectively.

“In addition to the lasting impact of COVID-19 on global aviation, the industry continues to face geo-political challenges, higher oil prices and uncertainty towards full economic recovery. Although all these challenges are of a changing nature, we have full confidence in the business model that we operate, the strength of the aviation industry worldwide, as well as its role in supporting regional and global economic recovery,” Al Thani concluded.

Source: Emirates News Agency

ABU DHABI, A UAE high-profile delegation will visit India on Wednesday to explore prospects of joint investment and cooperation within the framework of the UAE-India Comprehensive Economic Partnership Agreement (CEPA).

Abdullah bin Touq Al Marri, Minister of Economy, will lead the delegation with the participation of Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs; Dr. Ahmed Al Banna, UAE Ambassador to India; Juma Mohammed Al Kait, the Assistant Under-Secretary for Foreign Trade Affairs, Ministry of Economy; Faisal Al Hammadi, Acting Assistant Under-Secretary for Entrepreneurship and SMEs; Abdulla Mohamed Almazrui, Chairman of the Abu Dhabi Chamber of Commerce and Industry; Osama Amir Fadhel, Assistant Under-Secretary for the Industrial Accelerators Sector at Ministry of Industry and Advanced Technology; and over 80 representatives of the government and private sectors.

The visit aims to lay down sustainable mechanisms that empower the business community in both countries to maximise their benefit from the CEPA signed by the two countries in February 2022 and came into effect early this month.

The visit will also brief the UAE delegation about the facilities and services that the historic CEPA will provide to companies and businesses in both countries and the opportunities for building new sustainable partnerships that will leverage the UAE-India relations to unprecedented levels across various walks of economic work.

The agenda will focus on priority sectors for cooperation that remain key dynamic drivers for boosting ties: industrial production, civil aviation, financial services, ICT, food security, transport and infrastructure, logistical services, agri-technology, entrepreneurship, and other future economic factors sectors.

While in India, the delegation will hold a series of discussions with Indian ministers, senior government officials, and private sector leaders on the best ways to facilitate and double non-oil trade exchange under the CEPA.

The delegation will hold expanded meetings with leading Indian businessmen, entrepreneurs, and start-ups in New Delhi. In Mumbai, the Emirati-India public and private representatives will gather for the UAE-India Economic Partnership Summit.

The UAE’s delegation includes representatives of 41 government and private entities, most notably: the Ministry of Economy, Ministry of Foreign Affairs and International Cooperation, Ministry of industry and Advanced Technology, General Civil Aviation Authority, Abu Dhabi Department of Economic Development, Abu Dhabi Chamber of Commerce and Industry, Dubai Department of Economy and Tourism, DMCC, the Sharjah Investment and Development Authority (Shurooq), and Ras Al Khaimah Economic Zones (RAKEZ), the Department of Economic Development in Fujairah, the UAE International Investors Council, Abu Dhabi Ports Group, Masdar, DP World, Wizz Air Abu Dhabi, flydubai, Lulu Group International, Sharaf Group, Kanoo Group, Silal Company, and others.

India is the second-largest trading partner of the UAE in 2021. It accounted for 9% of the total volume of the UAE’s trade with the world, and 13% of the UAE’s non-oil exports, while the non-oil foreign trade between the two countries in 2021 reached AED165 billion, a growth of 66% compared to 2020.

Source: Emirates News Agency

ABU DHABI, The value of trade exchange between the UAE and Greece increased by 67 percent, amounting to over AED2 billion, compared to AED1.2billion in 2020, according to the figures from the Federal Competitiveness and Statistics Centre (FCSC), in 2021.

The figures also showed that the top five commodities imported from Greece in 2021 included petroleum and oils obtained from minerals worth AED510 million, tobacco valued at AED134 million, aluminium sheets and plates at AED77 million, building stones at AED67 million, and medicines at AED65 million.

Raw aluminium topped the list of top five commodities exported to Greece last year, valued at AED244 million, while telephones, including telephones for cellular networks or other wireless networks, topped the list with a value of AED124 million.

The figures also showed that the trade exchange between the two countries in 2012 amounted to AED772 million, which increased to AED907 million in 2013. In 2014, this figure was AED841 million, rising to AED991 million in 2015.

In 2016, the value of trade between the two countries amounted to over AED1 billion, and, in 2017, it increased to AED1.18 billion, further rising to AED1.5 billion in 2018 and AED1.67 billion in 2019.

Source: Emirates News Agency

VIENNA, The Organisation of the Petroleum Exporting Countries (OPEC) has reaffirmed its decision for upward adjustment of the monthly overall production by 0.432 million barrels per day (mb/d) for the month of June 2022.

This was announced by the end of the 28th OPEC and non-OPEC Ministerial Meeting, held via videoconference on 5th May. It was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market. It further noted the continuing effects of geopolitical factors and issues related to the ongoing pandemic.

The OPEC and participating non-OPEC oil producing countries therefore decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12th April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18th July 2021.

The organisation reiterated the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022. “Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting,” added the organisation in a statement.

The 29th OPEC and non-OPEC Ministerial meeting will be held on 2 June 2022.

Source: Emirates News Agency

ABU DHABI, The Central Bank of the UAE (CBUAE) has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 50 basis points, effective from Thursday, 5th May 2022.

This decision was taken following the US Federal Reserve Board’s announcement on 4th May 2022 to increase the Interest on Reserve Balances (IORB) by 50 basis points.

The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.

The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of the CBUAE’s monetary policy. It also provides an effective interest rate floor for overnight money market rates.

Source: Emirates News Agency

WORLD CAPITALS, European stocks rallied on Tuesday following a series of upbeat earnings reports as banks rose on government bond yields hitting fresh highs in anticipation of quicker interest rate hikes.

The pan-European STOXX 600 index edged higher 0.6% by 0716 GMT, with banks up 1.4% to lead sectoral gains.

Wall Street ended a seesaw session higher on Monday as the U.S. benchmark 10-year Treasury yield hit 3% for the first time since December 2018 ahead of a Federal Reserve meeting this week, where policymakers are expected to announce a 50 basis point rate hike. German bond yields also hit fresh peaks.

Source: Emirates News Agency

DUBAI, Arab Bank Group reported net income after tax for the first quarter of 2022 of $166 million as compared to $128.3 million for the prior period, recording an increase of 29.4%.

The Group loan portfolio grew by 5% to reach $35.2 billion as of March 31, 2022 compared to $33.5 billion for the same period last year, while customer deposits grew by 3% to reach $47.3 billion compared to $45.8 billion for the same period last year. The increase in loans and deposits in most areas of operations are in line with the Bank’s sustainable growth strategy to expand and diversify its clients and deposit base. The Group maintained its strong capital base with a total equity of $10.2 billion.

Sabih Masri, Chairman of the Board of Directors, stated that the results achieved by the Bank in the first quarter of this year, reflect the Bank’s strong financial position and its ability to deliver sustainable performance, while prudently managing the regional and global developments.

Randa Sadik, Chief Executive Officer, stated that the underlying performance of the Group continues on its growth path with first quarter results driven by an increase in core banking income and a lower cost of risk, highlighting that the Bank’s net interest and commission income increased by 6.3% compared to prior period, despite ongoing market volatilities.

She said that Arab Bank Group enjoys strong liquidity in the form of a granular deposit base and strong capitalization where loan-to-deposit ratio stood at 74.3%, and the capital adequacy ratio is at 16.5% in accordance with Basel III regulations. She also added that the asset quality of the Group remains high, with credit provisions held against non-performing loans continue to exceed 100%.

Source: Emirates News Agency

ABU DHABI, The Department of Municipalities and Transport (DMT) revealed that the UAE capital’s real estate market recorded 3,304 transactions, reaching a value of AED11.3 billion in the first quarter of 2022.

The department’s quarterly report revealed that the transactions included the buying, selling, and mortgages of all types of lands, buildings, and real estate. According to the real estate trading index published by DMT, the real estate sector in the emirate recorded 1,722 real estate purchase and sale transactions worth AED4.35 billion and 1,582 mortgage transactions worth AED6.9 billion.

Yas Island topped the list with AED1.2 billion in real estate transactions, followed by Al Saadiyat Island in second place with AED673 million. With AED598 million, Al Reem Island came in third, Khalifa City came in fourth with AED173 million, and the Al Raha Beach area came in fifth with AED168 million. And finally, Al Shamkha came in sixth with AED150 million worth of real estate transactions.

Dr. Adeeb Al Afifi, Executive Director of the Real Estate Sector at the Department of Municipalities and Transport, said, “With steady and sustained growth in Abu Dhabi’s real estate sector, the emirate has maintained its position as one of the world’s most sought-after markets and destinations for real estate investment.

“With excellent infrastructure, a diverse range of options, and world-class services, Abu Dhabi’s real estate industry strengthens its position as one of the best places in the world to live, work, and visit.”

Source: Emirates News Agency